Liners, Terminal Operators to Become Shareholders of Global Shipping Business Network

Nine ocean carriers and terminal operators have signed a shareholders’ agreement indicating their intention to become shareholders of the proposed Global Shipping Business Network (GSBN).

Illustration. Image Courtesy: Pixabay under CC0 Creative Commons license

The companies include CMA CGM, COSCO SHIPPING LINES, COSCO SHIPPING Ports, Hapag-Lloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International, and Shanghai International Port Group (SIPG).

The signing of the agreement symbolized the conclusion of an important step towards the GSBN’s official establishment.

The GSBN aims to provide a platform for the shipping supply chain participants to work collaboratively to accelerate the digital transformation of the shipping industry

The establishment of the network is yet to received all regulatory approvals. It will operate as a not-for-profit organization and offer a data exchange platform.

To support this vision, CargoSmart will be the technology solutions provider and platform operator for the GSBN.

“We expect the trusted blockchain platform will accelerate the sharing of verified logistics and cargo data, streamline business operations across the whole supply chain, and create value to each stakeholder,” Martin Gnass, Managing Director IT of Hapag-Lloyd, said.

“Existing data exchange and practices in the shipping industry do not adequately address all terminal operational details, leading to missed opportunities to improve overall efficiency. With terminal operators being founding members of the blockchain platform, we believe the GSBN will capitalize on new and existing opportunities on the terminal side and expedite digital transformation in the industry,” Ding Songbing, Manager of Strategy & Research Department of SIPG, said.

In preparation for the establishment of the GSBN, CargoSmart has conducted a number of proof-of-concepts (PoC) to validate opportunities to generate value for the participants in the GSBN. One example is the PoC with eTradeConnect, the trade finance blockchain consortium facilitated by the Hong Kong Monetary Authority (HKMA).

According to CargoSmart, the PoC proved that the GSBN and its associated technologies will be able to bring actual benefits to the industry.